Measuring Performance

Abstract

There are two factors involved in measuring performance.

(a)

Have targets been achieved?

(b)

Have costs been controlled in the light of actual activity levels.

These two factors are often not considered together. If performance is good, that is, targets are achieved by increased activity, the secondary consideration of control within that expanded level of activity is often overlooked. However, when targets are not achieved control of costs is not always related to the actual level of activity.